Information technology, IT, is a big part of how many businesses of today operate. This term is defined as the application of telecommunications equipment and computers for the purpose of data transmission, manipulation, storage, and retrieval. IT service management, or ITSM, involves implementing and managing quality of IT services. ITSM companies are helpful in offering solutions to help groups run effectively.

This practice is associated with the process-improvement methodologies and frameworks, such as: Six Sigma, CMMI and TQM. It is implemented to provide a framework in order to structure information technology-related tasks and interactions of IT technical staff with business users and customers. In a broader respect, this type of process overlaps with business service management and IT portfolio management. This is especially true when it comes to financial control and IT planning.

Typically ITSM is not concerned with technology development. Instead, focuses on back office or operational issues, which might also be referred to as operations architecture. In this sense, ITSM might be considered analogous to ERP or enterprise resource planning for IT.

ITSM is similar to a management information system but with a different point of view. It is thought to be far more introspective than outward facing and academic, which is true of MIS. Basically, it involves the IT thinking about IT delivery to a business and not information that a business needs. There are many frameworks and authors that associated with the discipline. Likewise, many proprietary techniques might be taken.

This largely exists for alignment of delivery when it comes to IT services needed by an enterprise. There is also emphasis placed on benefits to customers. This includes a paradigm change from the act of managing IT as various components to concentrating on delivery of services through various models of process.

There are four performance indicators that are analyzed in ITSM audits. The value and growth is assessed. This involves tracking the revenue growth against the utilization and investment. There is budget adherence, which relates to optimization of funds and avoidance of unnecessary spending. Risk impact is also important. Then there is communication effectiveness, which includes examining customer feedback, awareness and satisfaction.